February 19, 2022
Please disallow the lending of securities entirely. I believe that short selling is a substantial threat to our economic system.
To my understanding, it allows investors to profit from the decreasing value of securities while at the same time contributing to the devaluation of those same securities, which to me seems blatantly wrong.
On the other hand, short selling seems to create no value other than lining the pockets of individuals and institutions betting on failure. Buying a stock is a way to own a small part of a company you believe in. Borrowing and selling a stock short is the way to treat the economy like a sports game that you can bet on.
I also question whether major institutions are borrowing securities on a scale that risks destabilizing the greater market if their bet goes belly-up. I hope that the greater transparency suggested in this proposal will prevent such huge risks, but I would much rather short selling be ended entirely.